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Overall New-Vehicle Sales Satisfaction in the Philippines Improves After Two Consecutive Years of Declines

Nissan Ranks Highest in New-Vehicle Sales Satisfaction in the Philippines

SINGAPORE: 8 August 2011 -- New-vehicle sales satisfaction has increased in the Philippines after two consecutive years of declines that were caused by rapid sales growth and increased customer expectations, according to the J.D. Power Asia Pacific 2011 Philippines Sales Satisfaction Index (SSI) Study.SM

Now in its 11th year, the study measures new-vehicle owner satisfaction with the sales and delivery experience in seven key factors that contribute to overall satisfaction. In order of importance, they are: delivery process; delivery timing; salesperson; paperwork; deal; sales initiation; and dealer facility.

Overall new-vehicle sales satisfaction averages 829 on a 1,000-point scale in 2011, an improvement of 10 points from 2010. In addition, all nine brands included in the study have improved from 2010. Among the factors examined in the study, satisfaction is highest in the salesperson and delivery process factors, which have improved by 12 and two points, respectively, from 2010.

"The study finds a strong connection between sales standard implementation and overall satisfaction," said Mohit Arora, executive director at J.D. Power Asia Pacific, Singapore. "Overall improvement in the industry in 2011 is largely driven by more rigorous implementation of sales standards and processes across most manufacturers."

Nissan ranks highest in new-vehicle sales satisfaction with a score of 839 and performs particularly well in the delivery process and salesperson factors. Ford follows Nissan in the rankings (835). Although ranking below the industry average, Kia (823) improves more than any other brand in the study in 2011, a gain of 40 points from 2010.

The study finds that the percentage of customers who were offered test drives has increased to 88 percent in 2011 from 76 percent in 2010. Additionally, for a second consecutive year, the proportion of customers who actually take a test drive when one is offered has increased.

"Getting an opportunity to test drive a vehicle prior to purchase is becoming an integral part of the decision-making process in the Philippines," said Arora. "It is critical for dealers to address this evolving need by positively and promptly responding to requests for test drives, as this could become a differentiator between dealerships and brands."

The study also finds that customers whose vehicles were delivered to their home are more satisfied with the delivery process, on average, compared with customers who picked up their vehicle from the dealership. Among customers whose vehicles were delivered to their home, satisfaction averages 830. In comparison, satisfaction averages 823 among customers who picked up their vehicle from the dealership. The proportion of customers who received their vehicle at home in 2011 (50%) has more than doubled from 2010 (23%).

"The hefty growth rate of vehicle sales in the Philippines must not deter manufacturers from providing a delightful sales experience to their customers," said Arora. "In a market where a large majority of customers rely on traditional and non-digital sources of information in making a purchase decision--such as the reputation of the brand or recommendations from friends and family--providing a delightful sales experience helps to generate good word of mouth, which may translate into increased business."

The 2011 Philippines SSI Study is based on responses from more than 1,463 new-vehicle owners who purchased their vehicle between August 2010 and February 2011. The study was fielded from February to May 2011.

About J.D. Power Asia PacificJ.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide performance analytics services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan, Thailand and Vietnam. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: [email protected].

About J.D. Power and AssociatesHeadquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill CompaniesFounded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. With leading brands including Standard & Poor's, McGraw-Hill Education, Platts energy information services and J.D. Power and Associates, the Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion. Additional information is available at http://www.mcgraw-hill.com.